The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a

Monopolistic Competition
A type of competition within an industry where:
1. All firms produce similar yet not perfectly substitutable products.
2. All firms are able to enter the industry if the profits are attractive.
3. [ All firms are profit maximizers.
4. All firms have some market power, which means none are price takers.
Monopolistic competition differs from perfect competition in that

production does not take place at the lowest possible cost. Because of this, firms are left with excess production capacity. This market concept was developed by Chamberlain (USA) and Robinson (Great Britain).
Perfect Competition
A market structure in which the following five criteria are met:
1. All firms sell an identical product.
2. All firms are price takers.
3. All firms have a relatively small market share.
4. Buyers know the nature of the product being sold and the prices charged by each firm.
5. The industry is characterized by freedom of entry and exit.
Sometimes referred to as "pure competition". Perfect competition is a theoretical market structure. It is primarily used as a benchmark against which other market structures are compared. The industry that best reflects perfect competition in real life is the agricultural industry. ]

User: A significant difference between monopoly and perfect competition is that

User: A monopoly firm is different from a competitive firm in that

User: The difference between a perfectly competitive firm and a monopolistically competitive firm is that a monopolistically competitive firm faces a

Weegy: Monopolistic Competition
A type of competition within an industry where:
1. All firms produce similar yet not perfectly substitutable products.
2. All firms are able to enter the industry if the profits are attractive.
3. [ All firms are profit maximizers.
4. All firms have some market power, which means none are price takers.
Monopolistic competition differs from perfect competition in that production does not take place at the lowest possible cost. Because of this, firms are left with excess production capacity. This market concept was developed by Chamberlain (USA) and Robinson (Great Britain).
Perfect Competition
A market structure in which the following five criteria are met:
1. All firms sell an identical product.
2. All firms are price takers.
3. All firms have a relatively small market share.
4. Buyers know the nature of the product being sold and the prices charged by each firm.
5. The industry is characterized by freedom of entry and exit.
Sometimes referred to as "pure competition". Perfect competition is a theoretical market structure. It is primarily used as a benchmark against which other market structures are compared. The industry that best reflects perfect competition in real life is the agricultural industry. ] Marvel2|Points 816|

User: As long as marginal cost is below marginal revenue, a perfectly competitive firm should
A. increase production
B. hold production constant
C. decrease production
D. reconsider past production decisions

Weegy: if the cost is less than the reward, them the company would want to increase production, A.grant-laura|Points 10|

User: Because a monopolistic competitor has some monopoly power, advertising to increase that monopoly power makes sense as long as the marginal
A. benefit of advertising is positive
B. cost of advertising is positive
C. benefit of advertising exceeds the marginal cost of advertising
D. cost of advertising exceeds the marginal benefit of advertising

Weegy: The answer is C. benefit of advertising exceeds the marginal cost of advertising.jeifunk|Points 9995|

User: In the Flint Hills area of Kansas, proposals to build wind turbines to generate electricity have pitted environmentalist against environmentalist. Members of the Kansas Sierra Club support the turbines as a way to reduce fossil fuel usage, while local chapters of the Nature Conservancy say they will befoul the landscape. The Sierra Club argues that wind turbines
A. are a source of negative externalities
B. reduce negative externalities elsewhere in the economy
C. create a free-rider problem
D. are a way of solving a free-rider problem

User: When negative externalities are present, market failure often occurs because

Weegy: When negative externalities are present, market failure often occurs because the marginal cost resulting from the activity is not reflected in the market pricebibiolay17|Points 81|

User: A merger between a textile mill and a clothing manufacturing company would be considered a
A. horizontal merger
B. vertical merger
C. conglomerate merger
D. diagonal merger

Weegy: A merger between a textile mill and a clothing manufacturing company would be considered a verticle merger. A vertical merger involves firms that have a current or potential buyer-seller relationship.

Read more: Types of Business Mergers | eHow.com

User: A merger between a textile mill and a clothing manufacturing company would be considered a

Weegy: A merger between a textile mill and a clothing manufacturing company would be considered a B) vertical merger.
jher000|Points 8065|

User: A merger between a baby food company and a life insurance company would be considered a

User: From the point of view of consumer and producer surplus, what problem may be created when a country subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs?

Weegy: Problem may be created when a country subsidizes the cost of energy to consumers to help alleviate the burden of higher energy costs because It leads to less fuel being used than the amount that maximizes [ consume
] emdjay23|Points 1887|

User: Suppose people freely choose to spend 40 percent of their income on health care, but the government decides to tax 40 percent of a person's income to provide the same level of coverage as before. What can be said about deadweight loss in each case?

Weegy: Taxing income results in deadweight loss, while purchasing health care on one's own does not result in deadweight loss.uxiali|Points 1590|

User: The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is

Weegy: The U.S. textile industry is relatively small because the US imports most of its clothing. A clear result of the importation of clothing is there is less variety available than there would be without imports.jeifunk|Points 9995|

User: Countries can expect to gain from international trade as long as they

Weegy: An economist who is studying the relationship between the money supply, interest rates, and the rate of inflation is engaged in B. macroeconomic research User: After several years of slow economic growth, world demand for petroleum began to rise rapidly in the 1990s. Much of the increase in demand was met by additional supplies from sources outside the Organization of Petroleum Exporting Countries (OPEC). OPEC, during this time, was unable to restrain output among members in its effort to lift oil prices. What best describes these events? Weegy: The rise in demand reflects a movement down along the demand curve as supply shifted to the right when suppliers produced more oil. User: Price elasticity of demand is the:
A. change in the quantity of a good demanded divided by the change in the price of that good
B. change in the price of a good divided by the change in the quantity of that good demanded
C. percentage change in price of that good divided by the percentage change in the quantity of that good demanded
D. percentage change in quantity demanded of a good divided by the percentage change in the price of that good
Weegy: A. change in the quantity of a good demanded divided by the change in the price of that good. User: If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, the elasticity of demand for movie tickets is about:
A. 0.0
B. 0.4
C. 0.6
D. 2.5
Weegy: If average movie ticket prices rise by about 5 percent and attendance falls by about 2 percent, other things being equal, [ the elasticity of demand for movie tickets is about 0.4 since Price Elasticity (PED or Ed) = Change in Quantity / Change in Price ] User: When labor is the variable input, the average product equals the
A. marginal product divided by the number of workers
B. marginal product multiplied by the number of workers
C. number of workers divided by the ... (More)